Practice and Disclosures Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a Nevada real estate transaction involving material facts. Which answer best reduces transaction risk? (Item 290)
Answer choices
- A. The rule applies only to commercial property and never to residential property.
- B. Disclose known issues affecting value, desirability, or party decisions.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. The issue can be ignored if both parties want the transaction to close quickly.
Correct Answer
B. Disclose known issues affecting value, desirability, or party decisions.
Explanation
The correct answer is B because material facts requires candidates to disclose known issues affecting value, desirability, or party decisions. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Nevada exam practice.
Question details
- Difficulty: medium
- Domain: Practice and Disclosures
- Objective: material facts